Petrobras Said to Consider Selling Carcara Pre-Salt Field Stake

(Bloomberg) -- Brazil’s struggling state-controlled oil company Petrobras is waiting on exploration data from a promising deep-water field to decide if it will be included in a divestment plan, said two people familiar with the issue.

The Rio de Janeiro-based producer is waiting on a second well test in the northern section of the Carcara field before deciding to seek buyers for its stake in the project, said the people, who asked not to be named because the information isn’t public. Carcara, located in the so-called pre-salt region that holds Brazil’s biggest discoveries, was offered to investors earlier this year, and then Petrobras removed it from a group of offshore assets to wait for additional drilling results that could make it more attractive, the people said.

Petrobras didn’t immediately respond to a request for comment. Petrobras operates the concession with a 66 percent stake. Its partners are Galp Energia, QGEP Participacoes and Barra Energia.

Petroleo Brasileiro SA, as the company is formally known, is pursuing $15.1 billion in asset sales by the end of 2016 to help finance investments and reduce leverage after a borrowing binge during the commodities boom quadrupled its debt to the most of any oil company. Petrobras is also slashing investments as it faces $24 billion in debt repayments in 2016 and 2017.

The divestment plan has been complicated by the global rout in oil prices and a massive pay-to-play scandal at the biggest producer in deep waters. Members of Petrobras’s former management team have been jailed for allegedly taking bribes to award contracts in a scheme that also benefited parties in Brazil’s ruling coalition. The resulting political crisis will make it harder for Petrobras to find buyers, Edmar Almeida, an energy specialist at the Rio de Janeiro Federal University, said at a Thursday event in Rio.

Royal Dutch Shell Plc’s head of Brazil, Andre Araujo, said Dec. 2 that the company is looking at everything Petrobras is offering with “caution and transparency,” and that working with Petrobras forms part of operating in Brazil’s oil industry.

- With assistance from Yasmine Batista.

To contact the reporter on this story: Sabrina Valle in Rio de Janeiro at svalle@bloomberg.net To contact the editors responsible for this story: David Marino at dmarino4@bloomberg.net Peter Millard

Copyright 2016 Bloomberg News.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
Marine Electrician Helper
Expertise: Electrician|Rig Electrician
Location: Port Fourchon, LA
 
Derrickhand
Expertise: Derrickman
Location: New Iberia, LA
 
Motorhand
Expertise: Motorman
Location: New Iberia, LA
 
search for more jobs

Brent Crude Oil : $49.24/BBL 1.12%
Light Crude Oil : $47.83/BBL 1.65%
Natural Gas : $2.959/MMBtu 0.23%
Updated in last 24 hours